On Nov. 13, UK HMRC announced changes in effect from Apr. 6, 2025.
UK HMRC issued tax information and impact note about changes to secondary class 1 National Insurance Contributions (NICs) and changes to the employment allowance.
Overview
Measure decreases National Insurance contributions secondary threshold, the earnings after which an employer becomes liable to pay secondary Class 1 National Insurance contributions on a given employment, from £9,100 per year to £5,000 per year.
Also increases Secondary Class 1 NIC rate from 13.8% to 15%; increases maximum Employment Allowance from £5,000 to £10,500; and it removes the £100,000 eligibility threshold that currently applies to the Employment Allowance.
